German Auto Supplier Insolvencies Surge in Q2 2025
The German automotive and electrical engineering supplier industries are grappling with a wave of insolvencies, with 11 companies filing for bankruptcy in the second quarter of 2025. This marks a significant increase in the number of company failures, despite a decrease in overall insolvencies across industries.
The electric car industry is particularly hard hit, with a projected 30 percent increase in insolvencies for the full year of 2025. This follows a rise in bankruptcies in 2024 and ongoing structural issues in the German automotive industry. Suppliers exclusively focused on combustion engines are especially vulnerable, lacking future prospects in the face of the shift towards electric vehicles.
Vehicle manufacturers are now more willing to let suppliers exit the market due to existing overcapacities and unutilized investments in electric cars. The decreasing number of rehabilitations and takeovers, with only 53 procedural solutions in the second quarter, underscores the severity of the situation. Investors are acting cautiously, only supporting suppliers with unique parts that vehicle manufacturers cannot source elsewhere.
The outlook for the electric car industry remains bleak, with challenges unlikely to be resolved quickly. While overall insolvencies decreased in the second quarter of 2025, the trend in the automotive and electrical engineering supplier industries points towards a potential increase in bankruptcies in the coming months. The search results for the first nine months of 2026 indicate a potential rise in insolvencies due to the ongoing challenges faced by these industries.
Read also:
- U.S. CBP's Operation Plaza Spike Boosts Fentanyl Seizures Along Arizona-Mexico Border
- Tesla's EV Market Share Plummets in Europe, US Competition Intensifies
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Two 'Last Generation' Activists Sentenced for Cologne/Bonn Airport Runway Blockade
